The downturn in the economy over the last several years has impacted self storage businesses across the United States. However, the economy is slowly picking up and new storage facilities are being built and others are expanding.
In Buffalo, New York, Roger Trettel purchased an old department store warehouse building. Originally, he intended to develop it into a mixed-use building with commercial space and enclosed parking on the first level and residential units on the upper floors. After extensive analysis, he realized creating residential living would require sizeable public assistance. He also learned that if he added created housing units in the building, it would not qualify for historic preservation tax credits. He also found that there was not a demand for commercial office space.
After conducting a market study, Trettel realized that the community did not have a professionally-managed storage facility. He was able to assist Storage Central to open a storage facility there. Storage Central will offer file and equipment storage for downtown businesses and units for personal storage.
In other parts of the nation, Storage Post, headquartered in Atlanta, Georgia, is actively pursuing acquisition, redevelopment, and management of existing self storage properties in New York, Florida, and New Jersey. They are looking to significantly increase the number of their self storage units. Dylan Delaune, Acquisitions Team Leader said, “We are committed to growth through the purchase of self storage properties.”
In other news, Door to Door Storage is expanding its market and has added new facilities to its operation. They opened one facility in each of the following states: Connecticut, Massachusetts, New Jersey, and Pennsylvania. They currently have facilities in Boston, New York, Philadelphia, and Washington, D.C. Door to Door, founded in 1996, was the first company to offer portable storage units to customers. They assist their customers during job relocations, military moving and storage, home renovations, and staging and selling a home. Tracey Kelly, senior vice president of sales and marketing, said, “With this strategic expansion of our facilities, we will be able to provide more customers with the value and quality service they want and need.”
Self storage business owners will have market data more readily available to them because of the partnership that the national Self Storage Association recently created with Reis, Inc. New York-based Reis, Inc. provides market analysis of commercial real estate. Data collected and analyzed will be available to Association members and to those who are looking to invest into self storage facilities.
“Self-Storage Facility Opening on Ellicott Street.” Buffalo Rising; 26 August 2011.
“Storage Post Actively Pursuing Self-Storage Acquisition Opportunities.: PR Newswire; 25 August 2011.
“Door to Door Storage Adds Four Locations in the Northeast Reagion.” PRWeb; 25 August 2011.
“Self Storage Association Partners with National Real Estate Data Firm Reis.” Market Watch; 09 August 2011.